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  3. 53. sam buys an eight-year, 5000 par bond with an

53. Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%,...

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53. Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%, paid annually. The bond sells for 5000 . Let d1 be the Macaulay duration just before the first coupon is paid. Let d2 be the Macaulay duration just after the first coupon is paid. Calculate d2d1 (A) 0.91 (B) 0.93 (C) 0.95 (D) 0.97 (E) 1.00

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